My colleague Margie Fernandez flagged a research report from Oppenheimer on the ongoing Basel implementation. It has been calculated, through various methodologies, that the implementation of both Basel III and Dodd-Frank may be “upwards of 15% of operating profits of small banks.” Now it should be noted that these figures were derived from a meeting with Frank Keating, former governor [...]
Given the relatively light holiday week, I thought it somewhat appropriate to finish the very heavy and systemic examination of the series on eurodollar markets (Part 1 here; Part 2 here). The preceding episodes were dedicated to the eurodollar system as it built up toward the 2007 reckoning. What started out as an alternative to the gold standard quickly morphed, [...]
The rapid growth of the eurodollar market made closing the gold window viable. Without an international mechanism to settle trade imbalances, there was no way to keep the dollar as a reserve currency. That is why SDR’s were first conceived, and funded, in the 1960’s. There was every intention to ditch the dollar and move to a single, global currency [...]
With the Federal Reserve’s taper summer having created “dollar” troubles throughout the known credit world, there is renewed interest in eurodollars and wholesale money. When the world previously took note in August 2007 (at least those that were paying attention) it was an introduction into modern banking. Gone are the days when banks took in currency (in the form of [...]
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